Exchange Rate Calculator

The exchange rate between the Swiss Franc (CHF) and the US Dollar (USD) has experienced notable fluctuations over the past few months, influenced by various economic indicators and monetary policies from both Switzerland and the United States. As of March 20, 2025, the CHF/USD exchange rate stood at 1.133, indicating that one Swiss Franc was equivalent to 1.133 US Dollars. (ycharts.com)

Recent Exchange Rate Trends

In the first quarter of 2025, the CHF/USD exchange rate exhibited a gradual upward trend. Starting at 1.100 on January 31, 2025, the rate increased to 1.140 by March 7, 2025. (ycharts.com) This appreciation of the Swiss Franc against the US Dollar can be attributed to several factors, including differing monetary policies and economic performance indicators between the two countries.

Influencing Factors

Monetary Policies:

The Swiss National Bank (SNB) reduced its benchmark interest rate by 25 basis points to 1.5% on March 21, 2025, following a period of successful inflation containment. This move indicates a potential for further rate cuts, which could exert downward pressure on the Swiss Franc. (financebrokerage.com)

Conversely, the Federal Reserve has maintained a relatively accommodative stance, with market expectations anticipating three rate cuts, as inferred from the CME Group’s FedWatch Tool. The Personal Consumption Expenditures Price Index (PCE), the Fed’s preferred gauge of inflation, recorded a 2.8% year-on-year increase in February, aligning with market forecasts and suggesting a potential pause in the Fed’s tightening cycle. (financebrokerage.com)

Economic Indicators:

In the United States, rising inflation and recovering bond yields have supported the US Dollar's upward movement. Additionally, trade restriction policies, including tariffs on major trading partners, have contributed to the dollar’s bullish momentum. (benzinga.com)

In Switzerland, Real Retail Sales rose by 2.6% year-over-year in December, exceeding expectations and indicating some strength in the Swiss economy. However, the Swiss government's projected budget deficit of three billion francs annually signals potential economic hurdles that could affect the Swiss Franc’s relative value versus the USD. (benzinga.com)

Forecast and Outlook

Looking ahead, the CHF/USD exchange rate is expected to experience modest fluctuations. In one month, the exchange rate is forecasted to rise to 1.1392, a 0.34% increase from the current rate. In four months, it is projected to reach 1.1398, and in seven months, 1.1428. However, in ten months, the rate is expected to slightly decrease to 1.1323. (exchangerates.org.uk)

These projections suggest a relatively stable exchange rate in the near term, with minor fluctuations influenced by ongoing economic developments and monetary policies in both countries.

Conclusion

The CHF/USD exchange rate has been influenced by a complex interplay of monetary policies, economic indicators, and geopolitical events. While the Swiss Franc has shown strength against the US Dollar in recent months, future movements will depend on the evolving economic landscape and policy decisions by the SNB and the Federal Reserve. Investors and analysts should closely monitor these factors to make informed decisions regarding the CHF/USD currency pair.